Burger King owner to buy biggest franchisee for US$1 billion
THE owner of Burger King plans to buy its largest US franchisee for about US$1 billion in cash in a bid to fast-track an overhaul of hundreds of locations and win back customers.
Restaurant Brands International said it expects to complete its purchase of Carrols Restaurant Group by the second quarter and spend another US$500 million to remodel 600 of Carrols more than 1,000 locations.
After that, the fast-food chain plans to refranchise most of the stores to new or existing smaller franchisee owners, a fix-it project that could take five to seven years.
The deal is part of an ongoing plan by Restaurant Brands to invest in new technology, boost advertising spending and enhance the customer experience within stores to boost traffic and reverse years of slumping sales.
The chain will pay US$9.55 a share for all Carrols shares not already held by RBI or its affiliates, according to a statement on Tuesday (Jan 16). The price represents about a 23 per cent premium to Carrols’ 30-day volume-weighted average price as of Friday, the company said.
Restaurant Brands announced an initial US$400 million investment in September 2022 for improvements across locations, operations, marketing, digital and more.
Restaurant Brands shares rose 21 per cent in 2023, outpacing the 11 per cent increase for the New York Stock Exchange’s Composite Index during the same period. BLOOMBERG
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